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Economic Measurement and the Bias in Policy Choice

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Author Info

  • Myles, G.D.

Abstract

The level of economic activity is never measured perfectly because of the problems of definition, inaccuracies in data collection and the existence of the hidden economy. Such mismeasurement implies that government policies based on official statistics can be optimal only by chance. The analysis formalises this observation in a two-sector economy and attempts to quantify the direction and extent of the bias introduced into policy by the failure to account for the true size of the economy.

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Bibliographic Info

Paper provided by Exeter University, Department of Economics in its series Discussion Papers with number 9511.

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Length: 28 pages
Date of creation: 1995
Date of revision:
Handle: RePEc:exe:wpaper:9511

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Postal: Streatham Court, Rennes Drive, Exeter EX4 4PU
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Web page: http://business-school.exeter.ac.uk/about/departments/economics/
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Keywords: ECONOMIC POLICY;

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